Renters United spokesperson Robert Whitaker said they would be keeping an eye on property managers to ensure "they are not trying to sneak in by the back door by calling the letting fee something else".

The Ministry of Business, Innovation and Employment confirmed the fee was legal, since it was a variation on his existing contract, and not a new one.

Now that there's no fee, the man's niece will have to apply alongside other potential tenants, the property managers said - but no letting fee would be charged.